Correlation Between Northern Large and Pgim Jennison

Can any of the company-specific risk be diversified away by investing in both Northern Large and Pgim Jennison at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Northern Large and Pgim Jennison into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Northern Large Cap and Pgim Jennison Diversified, you can compare the effects of market volatilities on Northern Large and Pgim Jennison and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Northern Large with a short position of Pgim Jennison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern Large and Pgim Jennison.

Diversification Opportunities for Northern Large and Pgim Jennison

0.71

Correlation Coefficient

Northern Large  Pgim Jennison

Poor diversification

The 3 months correlation between Northern and Pgim is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Northern Large Cap and Pgim Jennison Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Jennison Diversified and Northern Large is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Northern Large Cap are associated (or correlated) with Pgim Jennison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Jennison Diversified has no effect on the direction of Northern Large i.e., Northern Large and Pgim Jennison go up and down completely randomly.

Pair Corralation between Northern Large and Pgim Jennison

Assuming the 90 days horizon Northern Large Cap is expected to generate 0.61 times more return on investment than Pgim Jennison. However, Northern Large Cap is 1.64 times less risky than Pgim Jennison. It trades about 0.2 of its potential returns per unit of risk. Pgim Jennison Diversified is currently generating about 0.07 per unit of risk. If you would invest  2,125  in Northern Large Cap on October 8, 2025 and sell it today you would earn a total of  221.00  from holding Northern Large Cap or generate 10.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Northern Large Cap  vs.  Pgim Jennison Diversified

Northern Large Cap

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Northern Large Cap are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Northern Large may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pgim Jennison Diversified

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Jennison Diversified are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Pgim Jennison may actually be approaching a critical reversion point that can send shares even higher in February 2026.

Pair Trading with Northern Large and Pgim Jennison

The main advantage of trading using opposite Northern Large and Pgim Jennison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern Large position performs unexpectedly, Pgim Jennison can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pgim Jennison will offset losses from the drop in Pgim Jennison's long position.

The idea behind Northern Large Cap and Pgim Jennison Diversified pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.